Guidance Note on Prudential Reporting of Loans and Deposits Data (March 2019)

Summary

This is a guidance note from the Jersey Financial Services Commission explaining how Jersey banks (JIBs) should complete the loans and deposits data sheets within their periodic prudential return. It covers six specific sheets: Asset Quality and Provisions, Loan Security, Total Deposits, Lending by Sector, Large Exposures, and Exempt Large Exposures, providing line-by-line completion instructions and definitions.

• Asset Quality and Provisions (8.1): Requires segmentation of loans by days past due and by internal credit classification (satisfactory, watch list, substandard, default), plus reconciliation of specific and general provisions; material inconsistencies must be explained in the covering letter.
• Loan Security (8.2): Loans and advances must be segmented by percentage of security cover held (100%+, 50-100%, 0-50%), unsecured, and booked loans.
• Total Deposits (8.3): Deposits must be analysed by residency category and reported separately by currency for GBP, EUR, USD, CHF and JPY, with other currencies grouped.
• Lending by Sector (8.4): Loans and advances must be broken down between Local and Non Local customers, by sector, and between overdrafts and other loans and advances.
• Large Exposures (8.5): All exposures exceeding 10% of Agreed Capital Resources (ACR) must be reported; exposures exceeding 25% of ACR (LE25s) require prior JFSC approval under Article 11 of the Banking Business (General Provisions) (Jersey) Order 2002.
• Exempt Large Exposures (8.6): Large exposures covered by the Money Market Concession or similar exempted categories, which do not require specific prior approval, must instead be reported on this separate schedule.

The note is technical completion guidance for an existing recurring prudential return rather than a standalone new requirement; it does not introduce new filing deadlines but reinforces existing reporting and approval obligations tied to the periodic return.

Key obligations

• Registered persons must not enter into an exposure exceeding 25% of Agreed Capital Resources (an LE25) without prior JFSC approval
• JIBs must report all Large Exposures exceeding 10% of ACR on the Large Exposures schedule, except exempt types reported separately
• Where reported figures on loan quality and provisions appear materially inconsistent, an explanation must be provided in the covering letter accompanying the return
• Deposits must be reported separately by residency category and by the specified currencies (GBP, EUR, USD, CHF, JPY), with any single country exceeding 5% of total deposit liabilities broken down in the Additional Detail sheet
• Group-related (non-parent) exposures must be flagged as connected by entering Y in the Connected column

Applies to

Jersey International Banks (JIBs), registered persons (deposit-taking businesses)